Are You Thinking About Buying a Foreclosure?

Purchasing properties in foreclosure can be very tricky business, and it requires total commitment to the details; otherwise a great idea can turn out to be a great disaster. Not only are you purchasing the property “AS IS”, which causes many other problems; you will also need to know about the HOA/COA outstanding dues, the property taxes and other liens on the property, if any. Likewise, you will want to check out the location of the home and see if there are any future city projects planned which will require a substantial contribution from each homeowner in the area. (Remember Cape Coral’s Water Project).

I could write a book with all of the stories that I have listened to from smart people who drank the “It’s So Easy” Kool-Aid. Well, it isn’t. I’ve seen people miss mortgages, liens, and other clouds on the title. I’ve spoken to people who purchased HOA foreclosures and were told that the mortgage would be resolved, but it wasn’t. I’ve spoken to people who lost quite a bit of money because they thought the outstanding HOA dues would be paid from their bid, only to find out later that wasn’t true.

The best advice I can give before you purchase a foreclosure is to find a mentor who has done it before at least three (3) times; otherwise make friends with a real estate attorney.